“rubber on the road” · •created 22 jobs, will grow to 40+ following close of current...
TRANSCRIPT
© John Fabel 2008
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Getting the “Rubber on the Road”
From Discovery to Commercialization
IGERT NanoTechnology Seminar
John FabelJattra Ventures, llc
© John Fabel 2008
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• SunEthanol Case Study
• Perspectives on Technology
innovation and commercialization
• YOU as the tech transfer case study
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John FabelDirector of Intellectual Property and New Technology
NECECJuly 16, 2008
Tech Transfer
Case Study
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Energy Market is Changing
QuickTime™ and a decompressor
are needed to see this picture.
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World Oil Production (Crude oil + NGL)
and various forecasts (1940-2050).
Source: ASPO
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Energy Market is Changing
Emerging Multi-fuel Future:
– Biomass energy will play key role in multi-fuel future
– Ethanol will be key component of Biomass energy
What Is Driving Change:
–Peaking oil supply >>>> Sustained high oil prices
–Declining EROEI for non-conventional fossil fuels
–Global Climate Change >> Need to Reduce CO2 emissions
–Energy security/trade balance
Carbon Reduction Potential:•Advanced biofuels most promising solution for reducing Greenhouse Gas emissions
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Biofuels are part of the solution:
• Development of Cellulosic Biofuels one of the most
effective pathways to petroleum replacement and
GHG reduction;
• “ … the highest potential for reduction in petroleum
and fossil energy (and therefore greenhouse gases -
GHG’s) lies in biofuels…”
• Important to utilize sustainable biomass sources
Source: World Energy Council (2007) Transportation Technologies and Policy Scenarios to 2050
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QuickTime™ and a decompressor
are needed to see this picture.
Source: Michael Wang, ANL
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40
50
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2005 2010 2015 2020 2025 2030
Cellulosic Biofuels Grain Ethanol
Bill
ion G
allo
ns/Y
ear
Energy Bill and DOE:60B Gallons of Biofuels by 2030
Biofuels Growth Scenario to Supply 30% of 2004 U.S. Gasoline Demand by 2030
44.8
12.8
Source: James D. McMillan, Ph.D.
National Renewable Energy Laboratory
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Problem:
• Biomass-to-Biofuels technologies have
not been sufficiently cost-effective to drive
market
• Enormous global opportunity if versatile,
cost-effective technology can be developed
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SunEthanol• Bio-fuels innovation company -- technology provider.
• Novel “Q-MicrobeTM” technology-platform provides
fundamental breakthrough advantages compared to
conventional competing technologies.
• Addresses cost hurdles to opening the biofuels market.
• Utilizes wide-range of global non-food biomass sources.
• Based upon novel microbe (“Q”) discovered by Umass Amherst
microbiologist Dr. Susan Leschine.
• Licensed core patent application from Umass.
• Rapidly developed venture & successfully scaling technology.
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Breakthrough Technology•Derived from unique, naturally-occurring microbial catalyst, C.
phytofermentans (“Q”) - very unusual.
•Discovered near the Quabbin Reservoir -- Mass native!
• Important unique properties compared to other technologies:
Both directly breaks-down AND ferments complex biomass: combines, simplifies and minimizes costliest/difficult aspects of other processes; other advantages.
Converts more of the biomass -- higher net yields and conversion.
Unusually versatile: can utilize wide range of feedstocks such as waste-paper, wood, sustainable energy crops, and so on.
•Unique properties enabling SunEthanol to develop and commercialize
biofuels technology platform with breakthrough advantages.
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A Few Highlights• Founded November 2006, Amherst, MA
• Rapidly grown company and proven-out the technology
• Raised over $3.5M capital investment from leading VC’s
• Closing $20M equity round to complete commercialization
• Created 22 jobs, will grow to 40+ following close of current financing
round, moving to larger facilities
• Recruited high-profile CEO (Dr. William Frey, formerly Director of
DuPont’s Biofuels Division) and VP of R&D (Dr. Sarad Parekh,
formerly Bioprocess leader at Dow Agro-science and Merck)
• Established key strategic commercialization partnerships
• Received several significant grants, including bringing collaborative
research $$ into UMass
• Supported University post-docs and technicians
• Generated an extensive IP portfolio
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Founded upon Collaboration
• Licensed original IP from University of Massachusetts at Amherst
• Worlwide rights to utilize Q-microbe in related production processes
• Ongoing collaborative relationship with the University; very fruitful
• Utilizing industrial, academic and governmental collaborations to bring technology to market
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Building the BridgeTechnology commercialization combines the skills and
promise of a discovery or technology, with the active
entrepreneurial support a discovery or technology needs to
move from an idea in the lab to a successful product and
venture.
Sagnitobel Bridge, SWI
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Building Commercialization Skills
How to build the skills for translating technical
skills and discovery into commercial application?
Crossing a conceptual divide:
Academia: Strong technology research skills
Commercialization: similar skillset,
Different conceptual framework
Different goals and drivers
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Intellectual Property
• Essential to understand intellectual
property (IP) issues
• Important to commercialization, fundraising,
licensing, “Freedom to Operate”
• Disclosure prior to publication!
• Prior Art
• Lab notebooks
• Umass/SunEthanol experience
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Invention vs. Innovation Invention: A unique/novel discovery or development
Innovation: The implementation of an idea or invention in such a
way that it becomes culturally adopted.
Commercialization: Market-based innovation
Entrepreneurship: The pursuit of opportunity through the systematic
implementation of an idea; “culture-changing activity”
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Technology = Innovation?
Technology Innovation occurs when a
technology or technique is successfully
configured and delivered to a problem or
need.
A technology itself is not necessarily an
innovation.
Building it does not mean they will come.
Example: The Segway
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Technology is the easy part
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Technology Strengths
+
Entrepreneurial Skills
+
Identified Opportunity
(+ coffee…)
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Companies are
Commercializtion Vehicles
Companies are commercialization vehicles
(as universities are research vehicles)
Bring entrepreneurial skills together with
technical skills
Market/opportunity driven
Enable access to capital
Enable value to be created and captured
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Markets & Opportunities Drive
Commercialization is typically market driven, not
technology driven.
New technology can point toward market
opportunity;
Market need can point toward technology
innovation opportunities
Opportunity can be: Technology Driven
Problem Driven
Change Driven
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Technology Commercialization
Opportunity
Technology and
product development
Market
understanding
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Technology Assessment Hotlist
What problem or need does it - or might it -solve?
Where’s the PAIN?!
Has it been done before?
Is there a market (and is large enough)?
Is there a channel to market?
Is there potential for intellectual property?
Can the resources be marshalled?
How badly do I want to do this?
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From “Technology” to “Product”
A Technology ≠ a Product
1) It has to work
2) People must want it
3) It must be competitive with other ways of satisfying similar
market need in terms of cost, etc.
4) You need to be able to deliver it
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“3 Faces of Product Design”
“Design Design”Technology
oriented
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“3 Faces of Product Design”
“Design Design”Technology
oriented
“Make it Possible”Manufacturing
optimization
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“3 Faces of Product Design”
“Design Design”
Technology
orientation
“Make it Possible”
Manufacturing
optimization
“Sales Design”
“I Want That!”
orientation
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Technology Transfer
!
QuickTime™ and a decompressor
are needed to see this picture.
© John Fabel 2008
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Building the BridgeToo often we see a disconnect between the promise of
a discovery or technology, and the active support a
discovery or technology needs to move from an idea in
the lab to a successful product and venture.
Sagnitobel Bridge, SWI
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Technology Transfer
Foster
Discover
y
• Link academic research and applied need & opportunity
• Education and Pedagogy
• “Open Innovation” orientation
• Students as innovators
• Innovation and Entrepeneurship skills; e.g. IGERTs
• Collaborative research
• Grant Funding
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Technology Transfer
Foster
Discover
y
Foster
Transfer
• Protect discovery
• Support IP protection
• Licensing:
• encouraging of start-ups
• Match expectations with private sector needs
• Support Faculty/Staff
• Student initiative
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Technology Transfer
Foster
Discover
y
Foster
Transfer
Transfer
Vehicle
• ESSENTIAL• “Vehicle” to translate
discovery into viable
technology
• Attract essential capital &
commercialization talent
• Adds entrepreneurial skill
• Key value add
• Often the missing piece
The
Bridge
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Technology Transfer
Foster Discovery
Foster Transfer
Transfer Vehicle
Full
Commerc
-ialization
• Sale to major company
• Significant development event
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It might not work, despite your best efforts
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But then
again, it just
might